2. Scope of Project Analyze the market trends Understand the buying behavior of customers Suggest a suitable Marketing Strategy Select appropriate market channel
6. Industry History Market regulated pricing of base oil Entry of foreign players Castrol BLted bazzar. Liberalization of the Indian economy Import of Base oil de-canalized with IOC Deregulation of base oil pricing Highly regulated market Clear dominance of PSUs IOC, HP, BPCL market share > 75% Until 90s Early 90s From 2002
7. Indian Lubricant Industry Current Scenario Emphasis on concern for environment No entry and exit barriers Quality at affordable prices Competitive Characteristics Expanding Margins under pressure
8. Indian Lubricant Industry Current Scenario 1.2 MMTPA Market of value appox. 7700 Crores 95% - Automotive Lubricant Expected Growth Rate Of 3%. 7 th largest lubricant market in the world Ratio of automotive/ industrial lubricants 65:35 Different Composition of Survey teams. Retail Lube Market – 0.7 Million Tons
15. Positioning BL is positioned as a lubricant which cares ; it cares about you, your family, your vehicle and your environment. It is not only about style, or power, it is about the responsibility to take care of the things which matter the most to you . BL is an environment friendly lubricant, which leads to greater fuel efficiency, higher mileage and longer engine life as against other lubricants which position themselves more as a racing, style based and all terrain lubricants. Positioning of other lubricants: Servo – Any Vehicle. Any Terrain. 100 % performance. Every Time Motul – Every Ride is a Race Castrol – Its more than just Oil, Its Liquid Engineering Positioning Statement We care. We know your vehicle is more than just a ‘vehicle’
19. BL Loves, Adores and Cares for you and your vehicle giving the best mileage and greater fuel efficiency enabling it to become an environment friendly and caring lubricant We care. We know your vehicle is more than just a ‘vehicle’
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21. Suggestion to BL : Co branding of its lubricant products with companies like HPCL, BPCL which have a good market share in the Fuel station segment . Survey Findings of Authorized Service Stations : They keep the same brand of lubricants as that of the fuel stations to which they are attached .
05/17/11 - X is among the top-10 grease manufacturers globally, boasting of significant exports. - The company is the preferred contract processor for oil companies in India and also manufactures products under its own brand name, XOL . - Major clients are Indian Railways, the ship-building industry, oil exploration companies, heavy-engineering industries, ports, cement plants, integrated steel plants, secondary steel mills and mining complexes.
05/17/11 X is planning to tap retail (lubricants), in which it will compete with major MNCs. The growth prospects for retail are high on the back of rising demand for personal Vehicles. Further, it is easier to pass on price hikes in retail as against the industrial segment. Volumes from the segment have tripled in two years growing from ~2,000te to ~6,500te. X is targetting 12,000te volumes by end-FY09E.The division contributed Rs1.3bn & Rs87mn as revenues & EBIT respectively in FY06.YTD FY07 EBIT rose marginally 2.7% despite a sharp 28.9% increase in revenues and rise in volumes, suggesting pressure on margins. The segment contributes 12.4% & 6.7% to total revenues & EBIT respectively.